|  | | 2009 News and Press Releases | | |
HEADLINE NEWS:
Sen. Bob Bennett Joins Pay-To-Play Pension Fight
Kenneth Lovett
The Daily News. October 16, 2009
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EXCERPT: A member of the powerful U.S. Senate banking committee wants to crack down on "pay-to-play" by law firms representing pension funds in mega-buck court cases.
"Pay-to-play by law firms ... pose serious potential conflicts of interest that can harm the pension fund retirees who have spent their careers in public service jobs," said Sen. Bob Bennett of Utah. The Daily News reported last week that securities law firms gave nearly $1 million to three state controllers in the last 10 years. Class-action cases for the pension fund have yielded $520 million in legal fees. Bennett asked the Securities and Exchange Commission to expand its investigation of "pay-to-play" involving investment firms to include securities law firms. Neither the SEC, nor State Attorney General Andrew Cuomo, who has received $199,000 from such firms, have jurisdiction in the the matter. "If state and federal officials won't live up to their responsibilities ... Congress may have to do it," Bennett warned. Cuomo said he could see barring law firm donations - someday. "You could argue pay-to-play will be a good rule all across the board," Cuomo said. "We're starting with the situation that is the most egregious. Meanwhile, government reform groups say state Controller Thomas DiNapoli should follow the lead of his Rhode Island counterpart and return his contributions. Rhode Island General Treasurer Frank Caprio in August returned $54,250 in campaign donations from members of securities law firms he had hired.
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